We met Alpine Immune Sciences (ALPN) in 2020 and decided to invest in 2021 when the company was valued at $10-$12 per share. Yesterday, Vertex Pharmaceuticals announced the decision to acquire Alpine at a price of $65 per share. Approximately 6 times in less than three years (~90% annually) – not bad, right? It’s amazing that in 2021 we fairly accurately predicted the price in 2024, our target price was $54.7.
However, as always, the road to success wasn’t easy. Alpine specializes in bispecific antibodies and initially had programs in oncology and immunology. They licensed their first product for systemic lupus erythematosus to AbbVie. The oncology product remained a leading one in the portfolio for some time, but then two people died in clinical trials, and the program was discontinued. As a result, the product for IgA nephropathy became the flagship. In the wake of a stopped program and amid a general downturn in biotech, the company’s shares dropped below $6, and honestly, we had almost lost hope. But then came positive news from early clinical studies in nephropathy, the shares started to rise, and it all ended yesterday with an unexpected but pleasant acquisition. Congratulations to the Alpine team!